Singapore’s leading taxation firm, SBS Consulting learned that Singapore government likely to increase the GST rate to raise revenue to help build a stronger social safety net.
Singapore -- (SBWIRE) -- 10/22/2013 -- The Singapore government in order to fund the higher social spending may likely increase the rate of GST Singapore. Some of the renowned economists of the country have expressed their opinions based on their researches and analysis on the subject.
While delivering speech regarding the fund of higher social spending, the government has stated, “Raising income tax to pay for slew of health care, housing and infrastructure initiatives could risk the nation’s appeal for business and investors.”
Commenting on this, UOB economist Francis Tan says, “Raising income tax is not very possible if Singapore wants to remain relevant for multinational corporations and high-income global talents.”
Barclay’s economist Ms. Joey Chew expresses her opinion as, “GST is regressive, but the government would provide offsets to lower-middle income households, as they have done so in previous rounds of GST hikes.” “Now that we have the permanent GST Voucher Scheme, the offsets are even easier to implement. The groundwork has already been laid for an eventual increase in GST,” she further added.
“Tax rates including Singapore corporate tax, personal tax, Singapore GST are just one of the pro-business factors that Singapore has to offer,” said Ms. Meena, Business Head of SBS Consulting. “Overseas investors and capitalists also consider various other factors such as ease of doing business, economic and political stability, liberal business policies, infrastructure and immigration policies, etc,” she added.
Further commenting on the issue, she says, “It is also possible for the government to increase revenue instead of raising Singapore tax rates. The Government should implement more pro-business facilities so as to attract global talents and capital which will enhance the Singapore’s competitiveness in the global market place. This will subsequently raise the national income and hence tax collection.”
Regardless of the government’s decision on the GST rate, SBS Consulting will continue to serve its global clients with the wide range of tax services including Singapore Company Tax, Singapore Personal Income Tax services, GST filing, Singapore property tax, etc. Even though the Singapore GST rates were gradually increased over the years from 3% to 7%, this rate is still considered to be one of the lowest as compared to most of other developed jurisdictions.
GST Singapore is a tax levied on consumption of goods and services. Precisely, it is taxable on what is spent and not on what is earned. In Singapore, GST was introduced in 1994 at a low rate of 3% and with a high threshold limit of S$1 million. Current rate is 7% and threshold limit remain unchanged. If the government takes further steps to revise the rate of GST in order to raise the fund for higher social spending, it may be capped at 10% (as per the prediction of some expert economists of the country).
About SBS Consulting
SBS Consulting is a leading Singapore taxation firm that provides comprehensive taxation services ranging from Singapore corporate tax services, Singapore tax filing for personal and company tax, GST registration, GST filing and ECI filing. The firm houses a team of expert and experienced tax consultants who perform their duties diligently. The professionals are committed to deliver services in conformity with the statutory regulations of IRAS.
Aside from offering tax services, the firm also offers services in other business areas such as company incorporation, accounting, auditing, corporate secretarial, payroll and immigration services. Thereby, one can find a complete range of corporate solution under the same roof of SBS Consulting.
SBS Consulting Pte Ltd
35-B Hongkong Street,
Singapore - 059674
Tel: +65 67289142
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